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Chasing Muni Yield Carries Risk

Municipal bonds, let's face it, could make anyone snooze. "They're complicated and boring," says Donald Cummings, principal of Blue Haven Capital, a fee-based wealth-management firm in Geneva, Ill. When he brings up the subject at cocktail parties, he says, people walk away.

These days, Cummings may find it easier to grab listeners' attention. Over the past two months, municipal bond yields have consistently exceeded Treasury yields, even before factoring in the tax advantage. As of May 7, 30-year Treasurys...